1. Gather Essential Documents
Begin tax preparation by collecting key documents like W-2s, 1099s, and receipts, which summarize your financial activities throughout the year. These documents form the foundation for accurate tax filing by clarifying your income sources, eligible deductions, and available credits. Organizing your paperwork before starting your tax return reduces the risk of errors and helps to maximize your potential refund.
Compile a checklist of required documents and reach out to employers or financial institutions if any are missing. For example, if you held multiple jobs, ensure you have W-2 forms from each employer. Additionally, if you worked as a freelancer, collect all 1099 forms from clients who paid you $600 or more.
2. Bookmark the Tax Time Guide
The IRS recently launched a webpage outlining key changes that could impact 2024 tax returns. The Tax Time Guide 2025: Essentials needed for filing a 2024 tax return brings together crucial information U.S. tax filers should know before filing their returns. It also links to additional documents for those looking to explore specific topics in greater detail.
3. Review Last Year’s Return
Your tax return from last year can serve as a helpful guide for this year’s filing process. It can reveal patterns in your financial life, remind you of regular deductions, and help identify any significant changes in your tax situation. Using last year’s return as a reference promotes consistency and thoroughness in your current filing.
Review key sections of your previous return alongside your current situation, highlighting any significant changes. For example, if you claimed a home office deduction last year and no longer work from home, you will probably be ineligible for it this year.
4. Create an IRS Online Account
An IRS online account provides secure, convenient access to your tax information and historical records. This digital portal enables you to view previous returns, make payments, and access confidential tax records at any time. An online account simplifies tax management while adding an extra layer of security to your tax-related activities.
NOTE: You can make payments and check your refund status without needing an account.
Did you know?
The IRS offers a free tool, the Interactive Tax Assistant, which lets you search for answers to tax questions based on your individual circumstances.
5. Use IRS Free File
You might qualify for IRS Free File, a complimentary tax preparation service for eligible taxpayers. This online service provides a quick and secure method for filing your return. It offers guided preparation to ensure accuracy and reduce filing fees. If your adjusted gross income is $84,000 or less, you might be able to use this comprehensive filing tool to submit your tax return.
6. Plan to File Electronically
Electronic filing, when paired with direct deposit, is the most efficient and secure method for filing taxes. It shortens processing time and minimizes the risk of lost or stolen tax documents while ensuring quicker access to refunds. E-filing with direct deposit usually results in refunds being received within 21 days, whereas paper returns typically take 6 to 8 weeks.
Stay informed year-round to empower yourself to make wise tax decisions. The Internal Revenue Service posts news and announcements related to U.S. tax filings on its homepage. Visit irs.gov for the latest information today.
